Lightspan Exceeds Analyst Expectations for the Fourth Consecutive Quarter; Company Generates Positive Cash Flow From Operations
SAN DIEGO, Nov. 14 /PRNewswire/ -- Lightspan, Inc. (Nasdaq: LSPN) (the Company), a leading provider of quality curriculum-based software and Internet products and services used in schools and homes, announced today that its operating results for the third quarter of fiscal 2002 ended October 31, 2001 exceeded analyst estimates for the fourth consecutive quarter. Total revenues of $13.4 million exceeded estimates by approximately $0.4 million. The Company recorded a net loss per share of $.37 compared to the analysts' consensus of $.40 per share as reported by First Call. In addition, the Company's cash position increased to $55.4 million as of October 31, 2001 from $54.6 million at July 31, 2001. Lightspan remains debt free.
Chairman and Chief Executive Officer John T. Kernan stated: "We are extremely pleased to have delivered another quarter of consistent performance while generating an increase in our cash position earlier than our initial estimates. Our team achieved these results in a difficult business climate by continuing to leverage our existing sales and professional development infrastructure while controlling operating costs."
Revenues generated from Internet subscriptions increased 56 percent during the third quarter of fiscal 2002 to $2.3 million from $1.5 million during the same period in fiscal 2001. Total revenues during the third quarter of fiscal 2002 increased to $13.4 million from $11.1 million during the same period in 2001, or 21 percent. For the nine months ended October 31, 2001, total revenues increased to $43.5 million from $38.5 million during the same period in the prior year (pro forma), or 13 percent. President and Chief Operating Officer Carl Zeiger stated: "Our revenue targets were achieved this quarter primarily from a strong pipeline of small to medium size transactions as customers continue to embrace Lightspan's achievement and accountability system."
On a reported basis, total revenues during the nine months ended October 31, 2001 were $43.5 million compared to $86.6 million during the same period in the prior year, which included $48.1 million of deferred license revenue from prior years.
The Company continued to achieve solid growth in its client base during the third quarter of fiscal 2002. Total schools using the Company's flagship software product, Lightspan Achieve Now, increased to 3,862 as of October 31, 2001. Schools are using a total of 3,418 subscriptions for the Company's Internet products, The Lightspan Network and eduTest.com. Academic Systems, the Company's higher education division, had 336 client campuses as of October 31, 2001.
Lightspan's operating results continue to benefit from large multiple year, multi-million dollar Internet contracts balanced with small to medium size deals from new and existing customers. In September 2001, the Company announced a multi-year, million dollar contract with the San Antonio, Texas Independent School District for both of Lightspan's Internet subscription products, The Lightspan Network and eduTest.com.
The Lightspan Board of Directors has elected Thomas Hurley, Senior Vice President of Programming, Comcast Cable Communications, Inc. to its Board. Mr. Hurley replaces John Kole, Managing Director, Comcast Interactive Capital.
Chief Financial Officer Michael A. Sicuro stated: "Our strong performance this quarter demonstrates the ability of our organization to execute through a difficult environment. The level of uncertainty regarding our top line has increased as school districts carefully balance their focus on academics with concerns about health and security in the wake of the terrible tragedies of September 11. We remain confident that our bottom line and cash targets will be achieved for the fourth quarter of fiscal 2002 and for the entire year of fiscal 2003, including our forecast of generating cash from operations during the quarter ending October 31, 2002."
Kernan concluded: "Our management team is committed to our goal of becoming profitable on both an operating and cash basis while delivering world class technology products for America's students, teachers, parents and administrators. We have demonstrated our ability to achieve these goals by our performance this quarter and will continue our focus on maximizing the efficiency of our sales team with an even stronger emphasis on cost control."
Results presented on a pro forma basis exclude the effects of recognition in fiscal 2001 of previously deferred Lightspan Achieve Now license revenues and cost of revenues. This pro forma information is presented for information purposes only and should not be considered as a substitute for the historical information presented in accordance with generally accepted accounting principles. |
